New Delhi, Jan 18 (IANS) Tamil Nadu sought an one time grant of Rs.3,000 crore and setting up of a gas grid connecting the major cities of the state by developing Colachel Port as an energy port with facility for importing liquefied natural gas (LNG) at a pre-union budget consultation meet here Wednesday.

Among other proposals put forward by state Finance Minister O.Panneerselvam were the freedom to borrow from the open market, when required, and launch of the national river water linking scheme.

Appreciating the union Finance Minister Pranab Mukherjee for calling the states for a pre-budget meeting Panneerselvam asked for an one time grant of Rs.2,500 crore to improve the infrastructure of Chennai.

“Tamil Nadu is the most urbanised state in India and the capital city of Chennai is fast expanding. The area of Chennai Corporation has increased considerably i.e., about a three fold increase after the recent merger of adjoining suburban areas,” he said, adding the infrastructure requirement of this new area is very high and the central government may consider a one time grant of Rs.2,500 crore for the purpose.

Urging the central government to declare Anna University -the largest technical university in the country - as the technical university of excellence, Panneerselvam asked for a one time grant of Rs.500 crore for it.

Referring to the state’s severe power crunch affecting the industrial growth, Panneerselvam said the ultra mega power project of the central sector are not coming up in Tamil Nadu and the power projects under the state sector are languishing for want of coal supplies.

As an alternative, he appealed to the central government setting up of a gas grid connecting Tamil Nadu’s major cities by developing Colachel Port as an energy port with facility for LNG import and link it up with various cities of Tamil Nadu besides creating a grid with the gas pipeline proposed from Cochin to Bangalore via Salem and Chennai.

Referring to Tamil Nadu’s decision to link its rivers, Panneerselvam urged the central government to launch a national river water linking scheme and extend financial support for the intra- state river linking programme already taken up by the state.